Haryana exempts fertilizers from VAT in budget 2006-07
Chandigarh, Mar 17 (UNI) Haryana today exempted fertilizers from the Value Added Tax (VAT) as Finance Minister Birender Singh presented the state's annual budget proposals for 2006-07 in the state assembly with a promise of initiating tax reforms to benefit the cross section of society.
Presenting the budget with a deficit of Rs 65.47 crore and no new taxes for the ensuing fiscal, the finance minister announced that the present 12 per cent tax on diesel would be maintained against the Empowered Committee's recommendation for 20 per cent tax on this essential commodity. ''Charging of lower tax on diesel shows our commitment to the farmers and encouragement that we are providing for increase of agriculture production in the state,'' the minister said. Stating that the budget deficit of Rs 65.47 crore was within manageable limits, the minister aid that the state tax revenue was expected to give a substantial increase.
The minister also proposed to reduce the entertainment duty from 50 to 30 per cent.
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